According to Cerulli, FIAs will make up 40% of total annuity production by 2023; the report adds that such growth means it’s likely that by the end of 2021 they’ll outpace sales of traditional variable annuities.

FIAs, especially as insurers continue to develop and enhance them, are seen as providing advantages in almost any market environment. If interest rates rise, for instance, insurers can raise crediting rates; if rates are low, clients can focus more on index strategies, knowing they have downside protection.